AMD and Samsung announce sales forecast cuts. Join Nvidia and Intel to discuss the chip industry downturn

Just last year, the only story about chips was that manufacturers couldn’t make enough of them to meet the strong demand for consumer electronics, cars, and other products that require semiconductors. Even though there are still shortages of certain types, the story is changing, especially for companies like AMD and Samsung. Flying HighRefer to the revenue and profit projections for 2021 through 2022.

They are now being submerged by the tide that also swept up Intel this summer and Nvidia. According to Bloomberg, this week, Samsung is reporting a 32 percent sales guidance cut, while AMD warned investors it’s going to miss its previous forecast by about $1 billion.

Low PC sales are a clear explanation for why Intel and AMD processors have not been as popular as they were in the early days of the pandemic. While everyone had the incentive to upgrade their laptops and gaming machines simultaneously, sales of these processors have slowed.

One way that manufacturers would like to reverse this trend is by partnering with other companies. as Intel CEO Pat Gelsinger described on Decoder, is “to enable the PC ecosystem to have better products than what is done by the Mac. Period.” But that hasn’t happened yet, and for giants like Samsung, it doesn’t even begin to address the slowdown in demand for cloud servers and other machines.

We emailed Gartner analysts Joseph Unsworth, Gaurav Gupta and Jon Erensen. They all confirmed to be The VergeOther OEMs also face high inventory levels and low demand. “OEMs had piled inventory in 2021 and first half of 2022 — during shortages — panic buying / double-triple ordering, etc.” said the analysts. The analysts also noted that the AMD and Samsung warnings are due to weak forecasts for PCs, smartphones and consumer electronics, even though others like automotive are stronger comparatively.

Samsung’s memory and storage chip business made it The largest chipmakerDespite the fact that Intel is a major manufacturer of x86 processors, it was beaten by Intel in 2018. Intel reported July losses. 22 percent decline in revenueLow sales of PCs and operating losses to drive its success Arc GPUsOut the door.

The demand for all types of chips peaked in the year 2022. Companies like Samsung saw record revenues in 2021, with a 26 per cent increase in profits (compared with its previous high in 2020). This was due to higher consumer electronics such as smartphones and TVs.

But not now WSJReportsContract prices for DRAM chips fell 15 percent and NAND flash chips dropped 28 percent. This is the main component that Samsung uses. TrendForce predicts that these declines will continue until they are almost flat by 2023.

There’s also concern about how the Biden administration’s Just-revealed restrictions on chip exports to ChinaCould have a negative impact on the semiconductor industry. Gartner’s analysts tell The Verge that this will slow down Chinese companies’ progress and hurt their long-term goals of becoming self-sufficient technology leaders. As part of the effort to reduce China’s dependence on technology, manufacturers such as Micron and Intel would need to be granted licenses to export chips-making equipment and semiconductors to Chinese companies. It was reportedly meant to impair Beijing’s military and technological capabilities.